Nomura held a training session after a former Jefferies & Co. managing director was indicted for fraud and encouraged its traders not to lie - but that didn’t stop the fibbing to customers about bond prices, according to U.S. prosecutors.
Bloomberg News reports that three former Nomura traders are accused of increasing the spread on their trades and generating about $7 million in additional revenue by lying about how much they paid for debt. Ross Shapiro, Michael Gramins and Tyler Peters pleaded not guilty and are scheduled to go to trial in October.
The session at the Japanese bank was called to discuss the indictment of ex-Jefferies trader Jesse Litvak, who was arrested in January 2013 for misleading customers on the prices of mortgage bonds, Assistant U.S. Attorney Liam Brennan said Wednesday at a hearing in Hartford, Connecticut. A U.S. federal appeals court later threw out Litvak’s March 2014 conviction for defrauding the U.S. Troubled Asset Relief Program and making false statements to the government.
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